WASHINGTON--(BUSINESS WIRE)--A new report from the Geothermal Energy Association (GEA), released
today at the organization’s International Geothermal Showcase in
Washington, D.C., reveals the international power market is booming,
with a sustained growth rate of 4% to 5%. The “2014 Annual U.S. & Global
Geothermal Power Production Report” finds almost 700 projects currently
under development in 76 countries. Threats caused by climate change and
the need for a renewable energy source that can satisfy both firm and
flexible grid needs are among the key factors driving the international
community to invest in geothermal power.

International geothermal market growth was up, while stateside growth
held steady; 85 MW of the total global 530 MW of new geothermal capacity
in 2013 was in the U.S., according to the new GEA report. U.S. growth
was flat because of policy barriers, gridlock at the federal level, low
natural gas prices and inadequate transmission infrastructure.

“While there was a modest downturn in capacity additions, the Industry
Update also underscores the tremendous untapped potential for geothermal
energy,” said GEA Executive Director Karl Gawell. According to the
report, the geothermal industry was working on 977MW of new capacity
(Planned Capacity Additions or PCA’s) at sites that hold over 3,092MW of
power potential in eight western states, the GEA report indicates (see
Figure 7).

U.S. additions in Utah, Nevada, California, and New Mexico kept the
industry on the map domestically in 2013, and future growth looks
promising. “The geothermal resource base is still largely untapped,”
noted Ben Matek, GEA’s Industry Analyst. “With new initiatives in
Nevada, California and Oregon moving to recognize the values of
geothermal power, we are optimistic that state policies could spark
another period of growth in geothermal power over the next decade,” he
added.

In 2013, 25
pieces of legislation in 13 U.S. states were enacted specifically to
address geothermal power and heating systems, creating a foundation for
the environment needed to foster geothermal growth in these states. Past
evidence shows successful policy initiatives have translated into
growth; in Nevada, for example, which leads the way as one of the most
business-friendly environments, the number of developing projects (45)
more than doubles that of California (25).

The Salton Sea Resource Area is a new initiative of California that
could be a significant source of growth for the U.S. geothermal power
industry if several policy barriers are overcome in the near term. The
Imperial Irrigation District has pledged to build up to 1,700 MW of
geothermal power by the early 2030’s at the Salton Sea. If successful,
this initiative could increase the nameplate capacity of the U.S. by 50%
over the next 20 years.

Elsewhere in the U.S., the Public Utility Commissions in Nevada and
Oregon recently created potentially beneficial opportunities for
geothermal power, while the Washington State Assembly clarified
confusing legislation. New Mexico debuted its first geothermal power
plant in 2013, with work by Cyrq Energy, and the state showed
legislative support for future projects when it passed H.B
85. The legislation matches federal
royalty rates and requires geothermal resources be managed as renewable
resources. In Alaska, the City of Akutan is supporting a promising
project, which may lead to the state’s first utility-scale geothermal
power plant.

Some myths have surfaced that geothermal power is reaching its potential
capacity in states like California and Nevada. These states still have a
significant amount of known untapped potential that could be used
domestically or exported to surrounding states. Overall, GEA estimates
about 50% of California’s known resources, 60% of Nevada’s, and 60% of
Utah’s are still untapped.

Globally, significant geothermal development growth is expected over the
next few years. In East Africa, Kenya and Ethiopia are building power
plants greater than 100 MW. For comparison the average size of a
geothermal power plant in the U.S. is about 25 MW. South American
nations such as Chile, Argentina, Colombia and Honduras have significant
potential, but are in the early stages of identifying their resources.
The GEA estimates that Chile is actively developing 50 projects and
prospects.

These are only a sampling of the vast increases globally; looking at the
numbers in Figure 2 of the new GEA report, there could be a time in the
near future when the United States is no longer the world leader in
geothermal energy production. For instance, the U.S. has about 1,000 MW
in the pipeline and 3,400 MW nameplate capacity for a total of 4,400 MW.
Meanwhile, Indonesia has 4,400 MW of planned capacity additions
announced in the pipeline alone.

In terms of established nameplate capacity, the U.S. (with a total in
2013 of 3,442 MW) still outpaces the Philippines (1,904 MW in 2013) and
Indonesia (1,333 MW), the world’s second and third ranked geothermal
energy producers.

Representatives from 34 countries will come together at the GEA
Geothermal Showcase today in Washington DC. Showcase participants will
represent more than half of all geothermal projects worldwide. Together,
these projects could mean over 10,000 MW of new geothermal power and
would represent around $45 billion in new investment.

At the Showcase, GEA will host a media availability with geothermal
industry leaders at 12:15pm ET to discuss the release of GEA’s new,
consolidated annual update on the U.S. and international geothermal
industries, as well as geothermal trends and governmental policies in
the U.S. and around the world. There will also be a dial-in option for
journalists who can’t attend in person. For more information, or to
request press credentials or dial-up instructions, please contact Shawna
McGregor, The Rosen Group, 917 971 7852 or shawna@rosengrouppr.com.

About the Geothermal Energy Association:

The Geothermal Energy Association (GEA) is a trade association composed
of U.S. companies who support the expanded use of geothermal energy and
are developing geothermal resources worldwide for electrical power
generation and direct-heat uses. GEA advocates for public policies that
will promote the development and utilization of geothermal resources,
provides a forum for the industry to discuss issues and problems,
encourages research and development to improve geothermal technologies,
presents industry views to governmental organizations, provides
assistance for the export of geothermal goods and services, compiles
statistical data about the geothermal industry, and conducts education
and outreach projects. For more information, please visit http://www.geo-energy.org/.
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